Econ Essay

952 words - 4 pages

4. All of the following are example of entry barriers, except
a. Government protection through pattern or licensing requirements.
b. Strong brands
c. Low capital requirements for entry
d. Lower costs driven by economies of scale
7. If a firm successfully adopts a product differentiation strategy, what should happen to the elasticity of demand for its product?
a. Increase
b. Decrease
c. Become unit elastic
d. Is unaffected
10- 6 Salons and Teeth Whitening
Salon owners have recently started offering teeth whitening services to clients in addition to their more standard services. In a number of states, regulators have ordered the salon owners to stop, claiming that this service ...view middle of the document...

b. The dollar would depreciate relative to the peso, and Mexican prices would decrease.
c. The dollar would depreciate relative to the peso, and Mexican prices would increase.
d. The exchange rate would not be affected, and neither would Mexican prices.

11- 3 Evaluating Appreciation
Explain how both Japanese consumers and producers would view an appreciation of the Japanese yen versus the U. S. dollar.

If the Japanese yen appreciates over, the U.S. firm converted yen to dollar value at a lower exchange rate than the rate at which it paid for yen at the time. This resulted in an affect by appreciation. Its cost of borrowing will be higher. Consumers will spend less and producers will spend more on products.

Chapter 12

1. After massive promotion of Justin Bieber’s latest music album, the producers reacted by raising prices for his albums. This implies that promotion expenditures made the album demand
a. More elastic.
b. Unitary elastic.
c. The change is due to psychological pricing.
d. Less elastic.

5. After firm A producing one good acquired another firm B producing another good, it raised the prices for the bundle of goods. One can conclude that the goods were
a. Substitutes.
b. Complements.
c. Not related.
d. None of the above
12- 3 App Pricing for Droids
Every week, more and more apps (applications) are available for Droid- based smart phones. How does this affect the optimal price for Droid- based smart phones?
This positively increases the revenue of the droid based phone. We are trying to get to the point where MR=MC. The optimal price is being maximized when the revenue is greater than the cost; the revenue is greater than the cost of the phone as applications are being available on a weekly basis.
Chapter 14

5. What is the total profit to the monopolist from selling the goods separately?
...

4124 words - 17 pages
1. Improvements in technology for producing all goods must result in
(A) an inward shift in the production possibilities curve
(B) an outward shift in the production possibilities curve
(C) a flatter production possibilities curve
(D) a steeper production possibilities curve
(E) greater unemployment of labor
2. The quantity of peanuts supplied increased from 40 tons per week to 60 tons per week when the price of peanuts

3096 words - 13 pages
Deandra Romanoff
ECON 545
May 25th, 2014
It is indeed very lucrative for potential owners to purchase gas stations in our current economic condition where gas prices are at sky high, especially in places where public transportation is scarce. On average, the whole United States have faced an increased in gas prices nearly 5 cents from March 21st, 2014 to April 4th, 2014 (Reuters, 2014). According to Reuters, Lundberg survey has shown that

3205 words - 13 pages
* The date when you finished the final exam: December 13 2013
You are advised to print a copy of this exam and read it prior to taking it. Make sure you have a word processor to use during the above dates (at home or work, in a lab or a public library, etc.). Do not use the small textbox to write your answers in WebTycho. Send me the electronic file with your answers as an attachment through the Assignments link! Please do not delete the

760 words - 4 pages
How To Reduce Federal Deficits
Like most Americans I want to educate myself in ways to reduce the deficit of this nation so I can sleep more sound at night. U.S. federal deficits should be reduced by cutting certain entitlement programs, implementing privatization, and increasing taxes on the rich. In this essay, I will provide hard facts that will not only reduce federal deficits, but also increase productivity and employment. These are

828 words - 4 pages
UNIVERSITY OF TECHNOLOGY, JAMAICA
SCHOOL OF BUSINESS ADMINSTRATION
ECO 1001: INTRODUCTION TO MICROECONOMICS
TUTORIAL #1
1. Which of the following is the best definition of economics?
a) The study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided.
b) The study of how consumers spend their income.
c) The study of how business firms decide what inputs

1205 words - 5 pages
PRACTICE QUESTIONS
QUESTION 1:
Consider a government that is contemplating introducing a gasoline tax to reduce gasoline
consumption together with a (lump-sum) rebate to consumers to alleviate the negative
e ect of the gasoline tax on their well-being. Use an indi erence curve map for two goods
(gasoline and other goods) to show
(a) the equilibrium if the rebate is based on the nal (post-tax) consumption of gasoline,
(b) the equilibrium

1462 words - 6 pages
Chapter 1: The Core Issues
Dr. Yu
ECON130
Principles of Microeconomics
What Is the Economy?
1. The Economy is us.
2. It is the grand sum of all our production
and consumption activities.
3. For the United States, it is the collective
behavior of the 320 million individuals who
participate in it.
The Core Issues
The purpose of an economy is to produce
goods and services that satisfy peoples’
wants using the limited

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